Hikal Ltd

Hikal, jointly promoted by Hiremath and  Kalyani group, is amongst the first companies to offer customized, cost effective and sustainable solutions from R&D to Commercial Manufacturing. It is one of the very few global and only Indian company to provide APIs for both Pharmaceuticals and Agrochemicals.  About 70% of company’s earning comes from exports and having strong marketing tie-ups with multinationals includes Bayer, Syngenta, Degussa and Pfizer. The company has two verticals – pharmaceuticals and crop protection wherein 61% of the net revenue comes from the former.

Net sales for Q2FY17 was up 14 (YoY) at Rs.232 crore. Costs rose 12% but EBITDA did well on the higher topline at Rs.47 crore, up 20%. Margins rose from 19.12% to 20.26%. Other income jumped up over 3 times. Net profit for the quarter was at Rs.15 crore, up 3 times. In previous Q2, the company had a forex loss of Rs.6 and that significantly dented the profit.

Borrowings of the company stands at Rs.500 crore and interest outgo for H1y17 was at Rs.25 crore. Equity is at Rs.16.44 and annualized EPS stands at Rs.6.5 (FV of Rs.2).